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18ACCELERATING DIGITALIZATION IN THE PERIOD OF PANDEMIC: WORLD EXPERIENCE AND UZBEKISTAN
Farkhod Abdullaev Ozodovich
Director of the Urgench branch of the Academy of Public Administration under the President of the Republic of Uzbekistan, (Ph.D.). prof.abdullayev@gmail .com
Adhambek Bakhramovich Ismailov
Graduate master at state university, Khorezm, Uzbekistan. ad.bakhramovich@gmail .com
ABSTRACT
The proliferation of digital technologies is destroying established production and trade models, creating both opportunities and challenges for the sustainable development of the organization and the region as a whole. This paper provides information on new trends in the integration of digital technologies and the consequences of the impact of the transformation of business processes on the organization.
Key words: digitalization, transformation, business, economics, trade, tendencies, market, integration.
ANNOTATSIYA
Raqamli texnologiyalarning tarqalishi o'rnatilgan ishlab chiqarish va savdo modellarini yo'q qilib, tashkilot va butun mintaqaning barqaror rivojlanishi uchun imkoniyatlar va muammolarni keltirib chiqarmoqda. Ushbu maqola raqamli texnologiyalar integratsiyasining yangi tendentsiyalari va biznes jarayonlarini o'zgartirishning tashkilotga ta'siri oqibatlari haqida ma'lumot beradi. Raqamlashtirish sharoitida korxona boshqaruvining asosiy xususiyatlari ko'rib chiqiladi.
Kalit so'zlar: raqamlashtirish, transformatsiya, biznes, iqtisodiyot, savdo, tendentsiyalar, bozor, integratsiya.
АННОТАЦИЯ
Распространение цифровых технологий разрушает устоявшиеся модели производства и торговли, создавая как возможности, так и проблемы для устойчивого развития организации и региона в целом. В данной статье
представлена информация о новых тенденциях в интеграции цифровых технологий и последствиях воздействия трансформации бизнес-процессов на организацию.
Ключевые слова: цифровизация, трансформация, бизнес, экономика, торговля, тенденции, рынок, интеграция.
INTRODUCTION
During the pandemic, the process of accelerating the development of the ICT sector, firstly, was uneven, since the restrictions associated with the pandemic differed between countries and could be introduced at different points in time, and secondly, the greatest impact was exerted on the telecommunications segment and the services sector related with remote work of employees. Both Uzbek and foreign researchers have examined the impact of the pandemic on the world economy in several directions, including the impact on global value chains, consequences associated with the emission of reserve currencies, changes in trade relations between countries, as well as the increasing role of digital technologies. The objective of this work is to highlight the main aspects of the latter factor, as well as to consider changes in the Uzbek economic and innovation policy in the context of the national program "Digital Uzbekistan 2030".
METHOD
At the same time, there is a decline in the volume of foreign trade turnover of the world. In particular, according to the World Trade Organization, in 2020, due to the pandemic, the world's foreign trade turnover fell by 13-32% [1]. In this context, the sustainable development of the Uzbek economy, the reliable implementation of the state's tasks in the social sphere, strengthening the competitiveness of national goods in the world market remain more important than ever.
Less knowledge-intensive industries such as agriculture, construction and traditional industries were less affected by the pandemic and continued to operate. A real boom - both in the capitalization of the respective companies and in investment activity - came in the segment of ICT corporations, which became the main beneficiaries of the crisis. ICT has proven to be in greater demand and by a large number of users in areas such as teleworking, telemedicine, food delivery and logistics, online and contactless payments, distance learning and entertainment. All this allows us to talk about an additional impetus to digitalization and the development of the digital economy. It turned out to be relevant not only
technological, but also ethical issues. In the first part of this work, modern trends in digitalization on a global scale for 2021 are considered. In the second part, it is studied in detail how Uzbekistan approached the pandemic in terms of innovation policy in the digital sphere and what results are expected until 2024.
LITERATURE AND REVIEW
Digital technologies and the changes they have brought to the daily life and work of companies have created new economic opportunities, primarily in connection with the emergence of new product markets and new ways of selling pre-existing goods and services; as a result, the processes of transformation of entire sectors of the economy and systems of interaction between producers and consumers have intensified [2]. This trend, which began first in developed countries at the end of the last century, has now acquired a global character, with pronounced regional and technological leaders, and changes in the world economy are increasingly associated with the word digitalization [3].
Globally, food currently accounts for 8% of total e-commerce spending, up from 6% in 2017. In April 2020, consumer spending, according to Amazon, grew by 35% compared to the same period in 2019.
The digital infrastructure (DI) is the core of the digital economy; this is its most important component of strategic importance. DI provides conditions for the movement of goods, exports and the provision of services. From a technological point of view, DI is supported by submarine cables, fiber optic, microwave terrestrial networks, and satellite communications.. Overall, internet traffic has increased by about 30% [4].
In addition to telecommunications, the pandemic has massively affected digital online services, and the consumption of content at home has grown significantly. Research has shown that 7% of households in the United States are connected to broadband, 17% of them previously did not have access to the Internet at all from home [5].
In addition, the pandemic has contributed to the emergence of hybrid business models that combine features of offline and online services. So, before the outbreak of COVID-19, education was built either according to the traditional offline model, or according to the online model, in which students could only access online materials. Today, universities (including in Uzbekistan) are introducing blended learning, in which traditional offline university education is combined with online courses, which opens up opportunities for teaching students from different parts of the world who can access virtually the same educational
services as their fellow students studying offline on campus. Similar trends are observed, for example, in the field of art: in museums, theaters, cinemas.
Currently, in foreign countries, a number of systems are used that provide an affordable level of digitalization for micro, small and medium-sized enterprises, such as:
1. Digital platforms that improve efficiency by reducing transaction costs and information asymmetries supported by rating systems, resulting in lower consumer prices, increased market access, increased competition, more efficient use of various resources, and increased flexibility of service providers.
2. Digital databases (cloud), which facilitate the transfer, processing and storage of data, which most simplifies the work with large amounts of information, and thus optimizes a number of business processes.
3. Digital applications that ensure the availability of information about a product or service that an organization produces.
The above digital technologies, based on the research of international organizations, greatly facilitate and shorten the time for establishing communication between the manufacturer of a product or service and the customer. However, in modern conditions, enterprise management must actively respond to changes in the external environment, build and apply, taking into account the transparency and structure of all business processes, an effective enterprise management system [6].
RESULTS
It should be noted that with the introduction of digital technologies into the activities of the enterprise, a number of advantages arise, such as: increased production flexibility, increased efficiency in the functioning of the enterprise's business processes. These advantages are due to the proactive change in the characteristics of the production process and the provision of information integration of the stages of the life cycle of manufactured products. They are formed due to the peculiarities of enterprise management in the context of digitalization: focus on enhancing investment and innovation activities, technical and technological re-equipment of production, the formation of a digital ecosystem, interactivity of the environment and a high reaction rate to changes; receiving, processing, analyzing and forecasting large amounts of data in real time; high speed of decision making, as can be seen from Figure 1.
Industrial production is rapidly developing with a predominance of high-tech industries; new production technologies appear and are being introduced. By
advanced manufacturing technologies (AMT) we mean technologies and technological processes (including the equipment used) controlled by a PC or based on microelectronics and used in the production of goods and services [7].
As experts admit, at present, the conceptual apparatus of the digital economy has not yet been fully formed. Without delving into a detailed analysis of the concepts of the digital economy, of which there are several dozen or even hundreds. At the same time, digital technologies are technologies for collecting, storing, processing, searching, transferring and presenting data in electronic form [8].
The impact of digitalization on the socio-economic development of regions is very ambiguous. So, opponents of the formation and development of the digital economy in Uzbekistan cite the following facts, which, in their opinion, digitalization carries:
- expanding opportunities for Internet fraud, hacking of personal and official information by hackers with its subsequent use for commercial or political purposes;
- a decrease in the number of jobs and specialties in traditional spheres of the economy: industry, agriculture, transport, as well as a decrease in the demand for accountants, lawyers, drivers, etc. in the economy, which can increase the level of tension in the labor market and increase the unemployment rate;
- limited possibilities of using digital technologies in the regions of Uzbekistan due to insufficient digital literacy of the population;
- the emergence and development of new diseases associated with the use of the Internet, mobile phones and computers (Internet addiction, "digital seasickness", "Facebook depression", "Google Effect", online gambling addiction, nomophobia, etc.) and how a consequence, a reduction in the time spent by a person in the real world, and a possible exacerbation of traditional diseases (decreased visual acuity, obesity, etc.);
- the spread of false information on the Internet can negatively affect both management decisions and misinform the population about the real state of affairs and contribute to panic in adults, as well as negatively affect children's consciousness, etc.
By contrast, digital advocates argue for the positives of the process, including:
- an increase in labor productivity by reducing costs (digital equipment is used instead of low-skilled labor) and saving time for performing routine work (including the use of computer programs and applications for calculations, etc.);
- development of electronic money and online commerce, simplifying the procedure for paying for goods and services or making transactions in a non-cash way;
- creation of new highly paid jobs that allow working at a distance without face-to-face contact, including through the development of freelancing;
- the formation and development of a system of electronic queues and appointments to doctors simplifies the procedure for obtaining medical care, which reduces the time spent in medical institutions and saves time, including working time;
- the possibility of using digital technologies (distance learning in the system of general, secondary specialized and higher education during quarantine) during global pandemics such as coronavirus, which can reduce the likelihood of an accelerated spread of the disease;
- the possibility of receiving electronic and distance education and advanced training without wasting time for full-time or part-time classroom training;
- conducting online conferences, round tables, symposia, meetings reduces the time and transport costs for holding face-to-face events;
- the possibility of remote control and control over regions, economic entities, employees, etc.
CONCLUSION
The digital economy presupposes adequate tools for the "digital" management. Many risks and controversial issues remain. In the digital economy, the initially socio-technical system becomes techno-social with a predominance of command and control functions generated by AI. The well-known pyramid of needs, according to Maslow, in this case, "virtualizes" and looks like an illusion, since all the social values and needs declared in it are presented in the digital environment and are virtually satisfied as, for example, in a computer game, and is reduced to the physiological needs of the primary, the basic level. Thus, the paradigm of the classical school of management with the predominance of personal and communication skills of influencing the controlled system is replaced by the paradigm of the formalized algorithmic impersonal control of focus groups by artificial intelligence. The study made it possible to formulate the following main conclusions.
1) in the context of digitalization, the effectiveness of management decisions based on the use of digital technologies, and, in particular, algorithms and capabilities of artificial intelligence, increases many times over;
2) the polarization of society is increasing, implying the allocation of an extremely limited in number (approaching one) upper part of the management pyramid - the control subsystem, represented by the initiator, the developer, the controlling link and the lower part (the controlled subsystem) - by the users of the services, the object of administrative influence;
3) The management system becomes self-sufficient, since it already includes and covers a set of various variables in the implementation of management acts in relation to the "formalized" object of influence. The action of an object in a predetermined digital environment forms the skills of existence outside, depriving the personality of the creative principle and the ability to think and act independently.
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